Prices Consumers Pay for Cars Keep Rising, Study Says

Transaction prices for new cars have been on the rise and the trend continued in March, according to research and forecasting firm TrueCar.com. Indeed, the average price consumers pay for new vehicles reached its highest level ever last month. The trend suggests car makers’ production levels are more in line with demand.

According to TrueCar estimates, the average transaction price for light vehicles in the U.S. was $30,748 in March, an increase of $1,977 or 6.9% from the year-earlier period. The average also rose by $143 compared with February of 2012. from March 2011 and up $143 (0.5 percent) from February 2012.

“The auto manufacturers have finally found their sweet spot, with the production of vehicles meeting the demand of consumers,” said Jesse Toprak, an analyst with TrueCar. He noted the better balance of supply and demand also helps drive down incentives.TrueCar.com estimates the average incentive for light-vehicles was $2,440 in March, down $43 from March 2011.

Below are TrueCar’s forecasts of average transaction prices and incentives for the top eight auto brands.